All About Escrow!

An escrow account is used to collect and hold funds to pay for your annual property taxes, homeowners insurance premiums and other fees.  The account is often established for you by your mortgage company when you take out your mortgage.  Real estate taxes and insurance premiums must be paid regularly - typically, payments are due once or twice a year - and failure to pay these bills on time may cost you money in tax penalties or result in cancellation of your insurance coverage.  An escrow account helps you manage your budget, gain peace of mind and ensure that your home is protected.

• Manage your budget: You do not have to make lump sum payments when your taxes and insurance are due. You have made monthly payments throughout the year to cover those obligations.
• Gain peace of mind: You don't need to keep track of when your tax and insurance bills are due.  The payments will be made, on time, on your behalf.
• Ensure that your home is protected: With paid-up insurance coverage and taxes, you protect your investment in your home and meet your lender's requirements.

Most mortgage companies require an escrow account for mortgages with less than a 20 percent down payment.  If you choose or are required to establish an escrow account, your monthly mortgage payment includes an amount for property taxes and insurance in addition to the amount you owe for principal and interest.The amount of your monthly mortgage payment that is for taxes and insurance is placed by your mortgage company into an escrow account. The funds can be used only to pay taxes and insurance on your behalf and the mortgage company is responsible for paying the taxes and bills when they are due.

If you are not sure if you have an escrow account, check your monthly mortgage account statement or contact your mortgage company.  Your account statement will typically indicate your "Escrow Balance" and the amount of your total monthly mortgage payment that is applied to escrow.

Contact us today: 214.923.0261 or email us: info@archwoodproperties.com 

www.archwoodproperties.com